As politicians celebrated the lifting of the debt ceiling in Washington, the United States hit the $20 trillion debt level for the first time in its history. At the same time, citizens are reaching their own personal milestone with $1 trillion in credit card debt alone. It is not hard to see this will end up given the trending lines of debts as we continue to spend wildly both publicly and personally.
The agreement between the White House and Democratic leaders raised the debt by $318 billion. That was added to an existing debt of a staggering $19.84 trillion. Treasury immediately started borrowing again — increasing the percentage of our taxes just going to debt management.
In the meantime, U.S. consumers added $33 billion in credit card debt during the second quarter of 2017 — that is the second-highest point of debt since the end of 2008.
The average household credit card balance is now $7,996 in 2017. It appears that we have truly achieved a representative democracy with leaders reflecting their constituents values: the government is spending as wildly as its citizens and pushing off payment to some later date as we add debt to pay off debt.